CHINA-US: TRADE WAR & CHINA'S DEPENDENCE ON FOREIGN SEMI-CONDUCTORS

In the aftermath of the US ban initially and later punitive fines on China's telecom company ZTE, top Chinese leaders are concerned about their vulnerability to potentially “neck-choking” technologies. especially dependence on foreign semiconductors. Dong Yunting,  Director of the Expert Committee at the China Information Technology Industry Federation, however, said that "China is the world’s largest buyer of chips, if you don’t sell them to us, whom will you sell them to?"  He added that the semiconductor industry cannot be restricted to national boundaries. "There are hundreds of semiconductor components, and I can say that no country can do them all." He recommended that, "therefore, this industry must be globalized." He also recommended "that China's semiconductor industry put the main focus on two parts [of the value chain], one is design and one is manufacturing; because we have a big gap in materials and equipment."





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